US-based investment firm Tiger Global Management has invested $25 million (approximately Rs 177.42 crore at current exchange rates) in online stock brokerage Upstox, according to several media reports.
The company will use the funds to expand its business and double its staff to 300 from the current 180 full-time employees, said Ravi Kumar, co-founder, Upstox. The startup, which has seen good traction in smaller cities and towns, will also enhance its product platform and team, according to a statement by the company.
Separately, Tiger Global partner Scott Shleifer added the firm was confident in its investment because it believes that Upstox will gain market share in the retail brokerage industry in India.
The investment is the latest bet by Tiger Global as it continues its spree following the end of a three-year hiatus last year. It was reported in May that the firm was in talks to invest between $20-30 million in the online brokerage, which is operated by RKSV Securities India Pvt. Ltd.
The infusion of capital comes after RKSV Securities raised $4 million (around Rs 27.3 crore) in 2016 in a Series A funding round led by Kalaari Capital. Healthcare technology firm GVK Davix Technologies Pvt. Ltd and other investors also participated in the round, with Kalaari managing director Vani Kola joining RKSV’s board.
Upstox is a discount stock broker that places an emphasis on efficiency and reliability. The startup provides products and tools such as web-, desktop- and mobile-based trading platforms, and application programming interfaces (APIs) for developers, according to its website.
The company offers free delivery trades, and charges for advanced methods such as intraday trades and futures and options.
Tiger Global’s bets
The firm has increased the pace of its investments in India, clocking at least one more reported investment this month. It led a Series B funding round worth $23 million (around Rs 163.7 crore) in Wow! Momo Foods Pvt. Ltd, which operates and owns brands Wow! Momo and Wow! China.
It made at least three investments last month. The investor led a $42 million (around Rs 300 crore) Series C funding round in education-technology startup Vedantu Innovations Pvt. Ltd along with private equity firm WestBridge Capital.
Tiger Global also took part in a $120 million (Rs 862 crore) funding round in financial-technology startup Cred, and invested $15 million (Rs 108 crore) in INDwealth, an artificial intelligence-based wealth management venture.